Hunan Yueyang Naneng New Energy Battery Material Co., Ltd.
Announcement on Using Raised Funds to Reimbuse Self-Raised Funds for Pre-Invested Projects and Pre-Paid Issuance Expenses
The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or major omissions.
Hunan Yueyang Naneng New Energy Battery Material Co., Ltd. (hereinafter referred to as the "Company" or "Hunan Yueyang") held the 20th meeting of the second session of the Board of Directors on April 21, 2026, and deliberated and passed the "Proposal on Using Raised Funds to Reimbuse Self-Raised Funds for Pre-Invested Projects and Pre-Paid Issuance Expenses." The Company agreed to use 227,202.11 million RMB of raised funds to reimburse the self-raised funds that were pre-invested in fundraising projects and pre-paid for issuance expenses. The sponsor, CITIC Securities Co., Ltd. (hereinafter referred to as the "Sponsor"), issued a consent verification opinion, and Tianjian Certified Public Accountants (Special General Partnership) issued a special audit report. The specific content is as follows:
I. Basic Situation of Raised Funds
As approved by the China Securities Regulatory Commission's "Approval on the Registration of Hunan Yueyang Naneng New Energy Battery Material Co., Ltd.'s Private Placement of Shares" (Zheng Jian Xu Ke (2026) No. 81), the Company issued 82,537,493 ordinary shares (A shares) of RMB 1 par value per share at an issuance price of RMB 58.01 per share. The total raised funds amounted to RMB 4,787,999,968.93. After deducting issuance expenses (excluding tax) of RMB 55,810,265.08, the net raised funds amounted to RMB 4,732,189,703.85. The raised funds were transferred to the Company's designated account on March 16, 2026. The above-mentioned receipt of raised funds has been audited by Tianjian Certified Public Accountants (Special General Partnership) and a "Capital Verification Report" (Tianjian Shen (2026) 2-5) has been issued. The Company and its subsidiaries, Guizhou Yueyang New Energy Battery Material Co., Ltd. and Yunnan Yueyang New Energy Battery Material Co., Ltd., have opened special accounts for the raised funds and signed the "Tripartite Supervision Agreement for Raised Funds" with the Sponsor and the banks where the raised funds are deposited.
II. Situation of Raised Funds Investment Projects
According to the "Prospectus for the Private Placement of Shares by Hunan Yueyang Naneng New Energy Battery Material Co., Ltd. (Registration Draft)," the raised funds from this issuance, after deducting issuance expenses, will be invested in the following projects:
| No. | Project Name | Total Project Investment (RMB Million) | Amount of Raised Funds to be Used (RMB Million) |
|---|---|---|---|
| 1 | Annual Production of 320,000 Tons of Manganese Iron Phosphate Project | 442,544.00 | 280,000.00 |
| 2 | Annual Production of 75,000 Tons of Ultra-Long Cycle Life Lithium Iron Phosphate Project | 90,815.21 | 50,000.00 |
| 3 | Annual Production of 100,000 Tons of Lithium Iron Phosphate Project | 90,434.00 | 60,000.00 |
| 4 | Supplementary Working Capital | 88,800.00 | 83,218.97 |
| Total | 473,218.97 | 473,218.97 |